Lloyds Metals lifts operating margin 7.5 percentage points in Q4
Revenue growth outpaced expense growth, while management outlined new capacity and mine additions for FY27.
Filed 17 Jul 2026, 14:49 IST · Lloyds Metals & Energy Ltd (LLOYDSME)
Key takeaways
- Consolidated operating margin expanded 7.5 percentage points QoQ as revenue grew 19.01% while expenses rose 5.32%.
- Consolidated net profit rose 40.43% QoQ to Rs 1,530.10 cr despite a 1.88 percentage-point increase in the tax rate.
- The stock's initial 1.09% decline was smaller than its 2.31% median absolute move after the previous eight results.
Price around the results
Revenue growth converted into a sharp operating gain
Lloyds Metals reported consolidated revenue growth of 19.01% QoQ, while expenses increased only 5.32%; this drove operating profit up 44.68% to Rs 2,545.30 cr. The result was led by operations rather than non-operating income: other income fell 64.56% and accounted for only 1.54% of pre-tax profit. Higher interest and depreciation costs therefore did not prevent pre-tax profit from rising 44.22%.
Margin recovery continued for a second quarter
Operating margin rose from 28.57% in Q2FY26 to 34.78% in Q3FY26 and 42.28% in Q4FY26, marking two consecutive quarters of expansion after the Q2 dip. The Q4 margin was 23.51 percentage points above the 18.77% median for the 51 Commodities peers that had reported. Net profit growth was partly restrained by the tax rate rising 1.88 percentage points to 30.04%, rather than flattered by a lower tax charge.
Management points to capacity and mining additions
Management said the second pellet plant was commissioned in May 2026 and that Gadchiroli environmental capacity had increased from 10 MTPA to 55 MTPA. The presentation said Dalpahar Mines operations are expected to commence in Q1 FY27 with a stated FY27 production target of 3 MTPA, while Laserda–Pacheri operations are also scheduled to start in Q1 FY27. Management also said it expects FY27 growth of more than 75%, including BHQ.
Initial market reaction was modest, then turned uneven
The stock fell 1.09% on the reaction day and 3.20% by the next session, before gaining 4.20% over 15 sessions and standing 1.55% lower after 30 sessions. The day-zero decline was below the 2.31% median absolute move across the previous eight results, although the next-day fall was larger; a corporate-action overlap also coincided with the reaction window.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹6,020 cr | ₹5,058 cr | +19.01% |
| Other income | ₹34 cr | ₹95 cr | -64.56% |
| Expenses | ₹3,474 cr | ₹3,299 cr | +5.32% |
| Operating profit | ₹2,545 cr | ₹1,759 cr | +44.68% |
| Operating margin (%) | 42.28% | 34.78% | — |
| Interest | ₹168 cr | ₹152 cr | +9.97% |
| Depreciation | ₹224 cr | ₹186 cr | +20.91% |
| Profit before tax | ₹2,187 cr | ₹1,517 cr | +44.22% |
| Tax | ₹657 cr | ₹427 cr | +53.87% |
| Net profit | ₹1,530 cr | ₹1,090 cr | +40.43% |
| EPS (₹) | ₹26.77 | ₹19.87 | +34.73% |
Operating margin of 42.28% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.09% | -2.33% |
| Next session | -3.20% | — |
| 5 sessions | -1.91% | +0.67% |
| 15 sessions | +4.20% | — |
| 30 sessions | -1.55% | — |
Volume on the results session was 2.61× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Gadchiroli operations achieved total production of 8.64 MT in the last quarter.
Guidance & outlook
- TEIPL expects FY27 growth of more than 75%, including BHQ.
Planned next quarter
- Dalpahar Mines operations are expected to commence in Q1 FY27.
- Laserda–Pacheri operations are scheduled to commence in Q1 FY27.
Expansion
- The second pellet plant was commissioned in May 2026.
- Environment capacity at Gadchiroli was increased from 10 MTPA to 55 MTPA.
- Dalpahar Mines are expected to begin operations in Q1 FY27, with a FY27 production target of 3 MTPA.
- Laserda–Pacheri's MDPA was signed, with operations scheduled to commence in Q1 FY27.
- The SML mine capacity was increased from 1.5 MTPA to 1.8 MTPA.
New initiatives
- The company is deploying a green fleet through electrification and LNG-hybrid adoption.
- An EV and LNG ecosystem has been established at the Surjagarh mines.
- LMEL acquired a 50% interest in an operating copper mining and processing platform in the DRC.
What to watch
- Whether consolidated operating margin holds above 42.28% after two straight quarters of expansion.
- Whether Q1 FY27 disclosures show the start of Dalpahar Mines and Laserda–Pacheri operations, as management said.
- Progress against management's stated 3 MTPA FY27 production target for Dalpahar Mines.